Chapter 2

Annual reports of non-statutory bodies, statutory office holders and non-statutory advisory panels

2.1        In its Report on Annual Reports (No. 1) 2011, the committee considered a number of reports received after 31 October 2010.  In future, the committee will consider these reports in its second report of each year.

2.2        The committee has only a small number of annual reports for closer examination in this year's second report including the following:

• Advisory Panel on the Marketing in Australia of Infant Formula;
• Pharmaceutical Benefits Pricing Authority; and
• Executive Director of Township Leasing.

2.3        A complete list of reports referred to the committee for examination, considered in both Report on Annual Reports (No.1) 2011 and this current report, can be found at Appendix 1.

Health and Ageing Portfolio

Non-statutory advisory panel

Advisory Panel on the Marketing in Australia of Infant Formula

2.4        The committee commends the Advisory Panel on the Marketing in Australia of Infant Formula (APMAIF) for producing an annual report to Parliament when there is no legislative requirement for it to do so.  The report provides important information to the parliament regarding the Marketing in Australia of Infant Formulas: Manufacturers and Importers Agreement (MAIF Agreement) which:

... gives effect in Australia to the principles of the World Health Organisation's International Code of Marketing of Breast Milk Substitutes (WHO Code) ... (and aims) ... to contribute to the provision of safe and adequate nutrition for infants ...[1]

2.5        The APMAIF is a non-statutory advisory Panel established in 1992 by the Australian Government.  Its main objective is to:

... monitor compliance with and advise the Government on the Marketing in Australia of Infant Formulas: Manufacturers and Importers Agreement (MAIF Agreement).[2] 

It has no statutory or formal regulatory powers to enforce this agreement and 'there are no financial or legal sanctions associated with breaches of the agreement'.  If the APMAIF determines that there has been a breach of the MAIF agreement, it advises the Minister (or Parliamentary Secretary) and publishes details of the breach in its annual report.[3]

2.6        This report contains details of two breach decisions.  One breach decision was made in January 2010 against Bayer Australia regarding a complaint.[4]  The second breach decision relates to a complaint of a similar nature which is due to be finalised in 2010–2011.[5]

2.7        The report contains details of the APMAIF's terms of reference which clearly identify the objectives and functions of this body.[6]  Chapter 3 of the report provides an account of the APMAIF's activities during 2009–2010.[7]

2.8        The report also provides details of the APMAIF Chair and Panel Members including their names, terms of appointment and areas of expertise.  The report further notes that all members of APMAIF are part time with:

... remuneration arrangements being in accordance with Departmental policy and relevant determinations of the Remuneration Tribunal.[8] 

Panel members are appointed by the Parliamentary Secretary for Health.[9]

2.9        Funding arrangements for the APMAIF are outlined in chapter 5 of the report. 

The Department of Health and Ageing administers funding for the operating costs of the APMAIF ... through the Department's Services for Other Government and Non-Government Bodies Special Account.[10]

The committee notes that details of the Department's Special Account are provided at page 547 of the Department of Health and Ageing Annual Report 2009–2010, but that an amount for the APMAIF is not separately listed there.

2.10      As the APMAIF operates under the department, the report does not contain audited financial statements.  It does contain a brief table outlining total funding and total expenditure which are identical amounts.[11]

2.11      It is noted that in 2009–2010, unlike in previous years, there was no contribution sought from industry under an informal cost-sharing agreement initially reached in 1998.[12]

Non-statutory body

Pharmaceutical Benefits Pricing Authority

2.12      The Pharmaceutical Benefits Pricing Authority (PBPA) was established in 1988 and is an independent non-statutory body which reviews and recommends prices for products supplied under the Pharmaceutical Benefits Scheme (PBS) and, since 2006, the National Immunisation Program (NIP).[13]

2.13      The PBPA's terms of reference require it to:

... determine or recommend to the Minister for Health and Ageing prices of items listed as pharmaceutical benefits or recommended by the Pharmaceutical Benefits Advisory Committee (PBAC) for listing.[14]

2.14      The report provides details of the PBPA's membership for the 2009–2010 financial year including names and positions of the members.  Details of terms of appointment and any remuneration paid to members do not appear to be covered in the report.

2.15      Funding arrangements for the PBPA are briefly outlined in chapter 1.  The  report states that the Department of Health and Ageing budget finances the Pharmaceutical Benefits Scheme (PBS) as well providing funds for:

• the fees and expenses incurred by the Chairman and consumer nominee, in accordance with determinations made from time to time by the Remuneration Tribunal;
• the day to day operations of dealing with pricing matters under the Scheme; and
• the costs of associated meetings, seminars and other related expenses.[15]

2.16      Chapter 1 of the report provides a brief table outlining the operating costs of the PBPA for the year ending 30 June 2010.[16]  As the PBPA operates under the department, the report does not contain audited financial statements. 

2.17      Chapter 4 of the report discusses PBS reforms and notes that:

At the time of publication of this report, there is a Bill before the Parliament that, if passed, will change some of the provisions from the 2007 PBS Reforms.[17]

Families, Housing, Community Services and Indigenous Affairs Portfolio

Statutory office holder

Executive Director of Township Leasing

2.18      The Executive Director of Township Leasing came into existence on 1 July 2007 under the Aboriginal Land Rights (Northern Territory) Amendment (Township Leasing) Act 2007 (the Act).[18] 

2.19      Mr Pat Watson held the Office of the Executive Director of Township Leasing during 2009–2010 after being appointed by the Governor–General when the Office was established in July 2007.  It is noted that under the Act the Executive Director's appointment should not exceed five years.[19]

2.20      The functions of the Executive Director are provided for in section 20C of the Act and include:

...enter(ing) into township leases on behalf of the Commonwealth and to administer such leases including administering subleases and other rights and interests derived from such leases.  The Executive Director does not negotiate the terms and conditions of township leases.  Township lease negotiations are conducted on behalf of the Commonwealth by the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA).[20]

The Executive Director has since received additional functions through the Indigenous Affairs Legislation Amendment Act 2008 which enables:

... the Executive Director to hold other types of leases or subleases over land held primarily for the benefit of Aboriginal people in the Northern Territory.[21]

2.21      The 2009–2010 financial year saw the third year of operation for this body and described the year as:

... one of consolidation combined with the facilitation of economic development opportunities.[22]

2.22      The report provides that funding for the activities of the Executive Director of Township Leasing comes from the Aboriginals Benefit Account (ABA), details of which are contained in the FaHCSIA financial statements. The report provides a small table outlining expenditure for the year ended 30 June 2010. [23]

2.23      The report commented on the finalisation of the sale of 13 residential subleases at Wurrumiyanga (Nguiu) which included the sale of three new homes to residents which were constructed under the Home Ownership on Indigenous Land Program (HOIL).  The report noted that:

The Office remains encouraged by the way the Traditional Owners at Wurrumiyanga (Nguiu) have embraced the opportunity to invest in their own township and to take advantage of business opportunities made available through the Strategic Indigenous Housing and Infrastructure Program (SHIP) building activity.[24]

2.24      The report also discusses the issue of:

... seven valuations to local families living in community houses located in Angurugu and Umbakumba.  IBA has commenced providing information sessions on home ownership to local residents ... (whilst) Groote Eylandt and Bickerton Island Enterprises (GEBIE) have also entered into an agreement with IBA to provide a local contact for IBA home loan services on Groote Eylandt and Bickerton Island.[25]

Conclusion

2.25      The committee is pleased to note that generally the annual reports examined adhere to the relevant reporting guidelines in a satisfactory manner. The reports continue to maintain high standards of presentation and provide a comprehensive range of information on their functions and activities.

 

Senator Claire Moore
Chair

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